WABE Radio, July 14, 2015
Comcast is now offering residential customers its high-speed fiber Internet service. It’s one of the fastest and most expensive Internet options for residential customers in Atlanta. Gigabit Pro will cost $299 per month with a $500 installation fee and a $500 activation fee. The promotional price is $159.
Comcast’s Alex Horowitz said he thinks it’s reasonably priced especially because of the costs associated with installing fiber to people’s homes. “We’re seeing competitors pricing 1 gig on average around $79, and this will be about double that, but it’s also going to be twice the speed,” Horowitz said.
With 2 gigabit-per-second speeds, he said, you can download a 30-minute sitcom in three seconds or a full high-definition movie in 25 seconds.
A Pricing Strategy?
A business editor at Light Reading, Alan Breznick, said Comcast’s price is the highest he’s seen among Internet providers for gigabit service.
“Maybe they’re starting out with it as a marketing gimmick to say [it] has the fastest service, but they have plans down the road to turn into a more serious service,” Breznick said.
Christopher Mitchell leads the nonprofit Institute for Local Self-Reliance, which connects local governments with high-speed Internet. “If they charge $300 a month, then they know very few people will take it and they don’t have to cannibalize their existing network,” Mitchell said.